Taking another look at Saturn

Wednesday

Aug 29, 2007 at 12:01 AM

DETROIT — Repairing a damaged brand typically takes years, not weeks, but there's some evidence that a confident gamble by Saturn — long one of General Motors Corp.'s most neglected brands — has helped jump-start its revival.

KATIE MERX

DETROIT — Repairing a damaged brand typically takes years, not weeks, but there's some evidence that a confident gamble by Saturn — long one of General Motors Corp.'s most neglected brands — has helped jump-start its revival.

From early June through July, most Saturn dealerships displayed and offered test drives not only of the brand's new and highly acclaimed Aura sedan, but also of the industry's top-selling midsize cars: the Toyota Camry and Honda Accord.

And data and anecdotal evidence from automotive consumer Web sites Edmunds.com and Kelley Blue Book indicate that the initiative, combined with the brand's new and expanded vehicle lineup, helped to attract some shoppers who wouldn't have considered Saturn previously.

"Their consideration seems to be going up," said Jack Nerad, executive market analyst at Kelley Blue Book. "But rebuilding a brand is a slow process. It doesn't happen in days, a model year or perhaps even two model years. ... Still, as that consideration goes up, some of those consumers will buy. Without consideration, you don't get buyers."

Edmunds.com reports that in June, Saturn saw an increase — from 7 percent to 8 percent — in the number of car shoppers who considered both an Aura and a Camry.

A 1 percent increase in cross-shopping in one month may not sound like a huge success, but in the competitive world of consumer goods, it counts, said Edmunds.com industry analyst Jonah Brown.

"That's a real victory for GM," Brown said.

It does indicate that things are improving, Nerad said, but it also shows that no matter how good a new vehicle is or how much a brand improves, it takes time to persuade consumers to even consider it — let alone buy one.

Dealers say the true test will be whether that consideration will transfer to sales and whether GM will stay committed to keeping the lineup fresh.

Carl Galeana, whose Michigan dealerships include Saturn of Lakeside and Saturn of Warren, called the side-by-side-by-side test drive a smart marketing move.

"People liked it when they came in the showroom," said Galeana, whose dealerships sent their Toyotas and Hondas back last week. "I don't know if it sold any cars."

Sarah Woolson, general sales manager at Saturn of Ann Arbor, Mich., agreed that people were impressed by the promotion.

"We definitely had people coming in because they were considering all of the cars," Woolson said. "And we had some people who made their decision toward the Aura. Some chose the others."

But those Japanese brand cars, which are assembled in U.S. plants, are not on the shopping list of Gerry Hanson, 56, of Harrison Township, Mich., who tested a Saturn Aura XR at Saturn of Lakeside on Friday.

"I'm a U.S. car buyer," he said. "No foreign car for me."

He said the Saturn "appeared to be as good" as the seven Cadillacs he has owned. He wants to stay with a GM product and plans to buy a Saturn once his daughter decides whether to buy his Cadillac.

After years of driving luxury cars, Hanson said he "decided to go a little more inexpensive."

The test-drive promotion is just one of the efforts GM has made to spread the word about Saturn's new models.

For instance, the brand sent some people who bought the Aura before it won car of the year the trophy to have for a day, as if it were the Stanley Cup.

The test-drive program was another step in the right direction for Saturn and GM, dealers and analysts said, although data on the program are scarce.

Dan Keller, Saturn's marketing director, said it's too early to have processed all of the measures. But he said GM generally was pleased and would continue to do what it takes to build consideration of the Saturn brand.

"We think it was really quite successful, though in a different way than we might have anticipated," Keller said. "The industry took a nosedive in June and July, but the Aura held market share."

U.S. sales of the Aura numbered 5,827 in July, for 2 percent of the midsize car segment. That's up from 4,784 sales in May, or 1.4 percent of the segment.

The segment-leading Camry, with its 14.5 percent U.S. market share, saw a drop in sales to 41,514 in July from 50,126 in May.